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Tuesday, April 23, 2024

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$300m World Bank Grant To Mozambique Post Scandal

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The World Bank on Monday granted $300 million to Mozambique. This deal marks the resumption of its support to the country six years after it suspended aid following a financial scandal involving the Mozambican government.

The funds disbursed by the multilateral organisation in the form of a grant will be used for infrastructure projects to support the economy and improve the living conditions of the population, said Mozambique’s finance minister, Max Tonela.

This is the first funding to support the state budget that we hope for in the next three years,” Tonela added during the signing of the agreement in Maputo.

The World Bank’s country director for Mozambique, Idah Pswarayi-Riddihough, pointed out that the funds allocated by his organisation should come “in support of structural reforms”. He added that this will extend the efforts undertaken in recent years to strengthen accountability and transparency in the public sector.

International Monetary Fund (IMF) granted its first loan to Mozambique (worth $456 million) in May. This move comes after World Bank resumed its aid since the so-called “hidden debt” scandal.

According to Africanews, this massive corruption case in one of the world’s poorest countries is linked to secret loans of $1.8 billion from foreign banks to Mozambican state-owned companies, guaranteed by the state.

The trial of 19 defendants close to the government, is underway in Maputo with the verdict expected by the yearend.

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